a brief overview of different companies coming to India after opening up of retail

1. US France UK Germany US
Sales: Sales: $130 Sales: Sales: $101 Sales: $77.3
$374.5 bn bn $102.6 billion bn
billion
Earnings: Earnings: Earnings: Earnings:
$12.9 $5.2 billion Earnings: $1.5 billion $4.2 billion
billion $5.5 billion
Stores: Stores:
Stores: 87,422 Stores: 2,221
worldwide 3,729 Stores:
6,800
worldwide 2,258
worldwide

3. About Walmart
• Walmart, is an American multinational retailer
corporation that runs chains of large discount
department stores and warehouse stores.
• It is is the largest retailer in the world and It is
also the biggest private employer in the world
with over two million employees.
• Walmart remains a family-owned business, as
the company is controlled by the Walton
family .

4. About Walmart (Contd..)
• It consists of three retail formats :
 Discount Stores :size varying from 51,000 square feet
(4,738.1 m2) to 224,000 square feet
(20,810.3 m2).They carry general merchandise and a
selection of groceries.
Walmart Supercenters : size varying from 98,000 to
261,000 square feet (9,104.5 to 24,247.7 m2).
Walmart Market : is a chain of grocery stores that
average about 42,000 square feet (3,901.9 m2). They
are used to fill the gap between discount store and
supercenters.

5. Walmart and India
• Bharti Walmart Private Limited is a joint venture
between Bharti Enterprises and Walmart.
• Bharti and Walmart hold 50:50 stakes in Bharti
Walmart Private Limited.
• The joint venture is establishing wholesale cash-and-
carry stores and back-end supply chain management
operations in line with Government of India
guidelines.
• The cash and carry wholesale facility has been
named “Best Price Modern Wholesale”.

6. Benefits to kirana shop owners
from Best Price
• Best Price stores offer them access to quality products at the
lowest prices.
• They help kirana stores manage their inventory better by
enabling them to purchase in quantities they need and at the
time they require
• They have also created an innovative kirana model “My
Kirana” that provides them training and insights into areas
such as assortment planning, hygiene, in-store displays,
inventory management, value added services etc.
• In addition, different education programs for members with
customized modules like taxation, food preparation, food
safety etc. have also been introduced.

7. Benefits To farmers
• 7-10% higher price to farmers than what they get
from Mandi
• 3-4% incentive for the quality of the produce
farmers deliver to Bharti Walmart based on
customer requirement
• Expert advice on better crop planning and
management
• Efficient crop calendar management aimed at
catching early and late seasons for better prices
• Opportunity to maximize and improve income by
offering better quality.

8. Recent developments
• The GOI has announced 51% FDI in multi brand
retail.
• Walmart is planning to launch retail stores in
India within 18- 20 months. The first stores may
be rolled out in the states of Maharashtra and
A.P.
• Limited availability of real estate space coupled
with high real estate costs would be one of the
major challenges before its Indian retail foray.

9. Recent developments(Contd..)
• Bharti Walmart also sees bad supply chain
environment in big cities as another key challenge
before its retail foray in view of restrictions on
inter-state movement of goods
• Another key challenge before the MNC retailers
was to train and provide meaningful employment
to local population.
• Though the opposition is against the entry of
Walmart, many progressive farmers see it as a
win – win situation.

10. Carrefour
• French international hypermarket chain headquartered
in Boulogne Bullecourt, France
• Largest Hypermarket Chains with 1395 hypermarkets at
the end of 2010
• Second Largest Retailer Group in the world in terms of
revenue and third largest in terms of profit
• It operates in 4 store formats
Hypermarkets
Supermarkets
Convenience
Cash & Carry

11. Carrefour Around The World

12. Carrefour In India
• Carrefour Wholesale Cash & Carry
Opened its first Cash & Carry Store in India on 30th December,2010
in Shahdara, Delhi
• Currently operates 2 cash and carry stores in India
• It plans to enter the multi-brand retail segment with
home-grown retail giant, Future Group
• Signed an all exclusive franchise agreement with the
Landmark Group to build up hypermarkets in the country
• Kean Noel Bironneau, express “Whole hearted gratitude
to Government of India for taking this great initiative”

13. Metro
• Metro is the world’s 4th largest retailing
• Pioneered by Dr. Otto Beisheim, first C&C store in Germany in
1964
• 300,000 employees from 150 nations are working at over
2,200 outlets in 32 countries in Europe, Africa and Asia
• Annual Turnover is € 68 bn
• Metro Portfolio Services
Metro Cash & Carry
Real hypermarkets
Media Market and Saturn
Galeria Kaufhof

14. Metro in India
• Metro entered into India by establishing two sales
branches in Bangalore
• The first METRO Cash & Carry wholesale center in
India opened in Bangalore in 2003.
• At present, there are 5 wholesale centers in
operation
• 2 in Bangalore
• 1 in Hyderabad
• 1 in Mumbai
• 1 in Kolkata

15. Luxury Market in India
• India’s luxury market is pegged at $5.75 dollars and
is likely to grow at $14..72 billion by 2015
• India is likely to emerge as the top 10 luxury markets
of the world
• According to the BCG ,the shift in luxury market is
from owning a luxury brand to experiencing a luxury.
• Consumption of luxury brands has grown 29% in
products and 22% in services

16. GAP in India
• Gap sells clothing, accessories, and personal care products for
men, women, children, and babies under the Gap, Banana
Republic, Old Navy, Piperlime and Athleta brands
• The $14.2-billion specialty retailer GAP, which has around
3,100 stores across the globe, had revenues of $1.6 billion in
2011
• In India, GAP is operating through franchises and is present in
Delhi, Chennai, Hyderabad and Mumbai
• Gap also in consultation with other leading Indian apparels
brands which will ease its entry into the Indian Market

17. Solving Efeso
• It is a top management consultancy firm with a leading
reputation for connecting strategy with action
• The company announced its entry into the India market with
the acquisition of Gurgaon-based company Q-Spread
• Global retail groups present in India include Walmart,
Carrefour, Metro and Tesco. Walmart, Tesco, and Harrods are
among the company’s clients
• According to Filippo Mantegazza, they will built knowledge
teams in India in coordination with the international experts.
• The company is analyzing the Indian market for single and
multi brand retail and cash & carry
• It also plans to target the fast moving consumer goods sector
in India

18. Recent events in the luxury segment
• The worldwide chief of the world's biggest luxury brand Louis
Vuitton, Yves Carcelle , blasted India's policy of imposing a
30% local sourcing requirement for luxury groups such as his
as 'nonsense'.
• La Compagnie (A company by Regnis Fournier) plans to invest
Rs 350 crore in a facility in Puducherry, to make shoe uppers
for unnamed luxury footwear brands starting December. It will
subsequently produce 100% India-made high-end bags,
clutches and clothes for the global market.
• British menswear brand Hackett is set to open manufacturing
in India. The company, which has recently formed an equal
joint venture with Aditya Birla-owned Madura Fashion and
Lifestyle, plans to open some 10 stores in India soon.

19. • Across India, in cities such as Delhi,
Kanpur, Lucknow and Jaipur, a
clutch of businessmen are retooling
their businesses, hoping to supply
to global luxury goods makers keen
on setting up shop in India.
• Already, suppliers to brands such as
Armani, Polo Ralph Lauren, Veneta,
among others, although in a small
way, feel that the policy changes
will open up a window of
opportunity for them.
• But foreign luxury brands, keen as
they are to set up shop in India, are
not as enthused by the sourcing
conditions

20. TESCO
• In August 2008 Tesco had entered
into a franchise agreement with
Trent(Retail arm of Tata) to help Star
Bazaar, the Trent hypermarket offer,
build up its retail business.
• There are 15 Star Bazaar outlets
operating in India.
• It is a marriage of the retailing
experience of Trent and the backend
knowhow of Tesco.

21. • In Star Bazaar, which draws three to four per cent of
its revenues from private brands, Tesco helps in
terms of sourcing and developing its own private
brands in many categories such as noodles and
ketchups
• Private labels help retailers earn higher margins as
they save on overheads.
• The 300 staff-strong Tesco Hindustan Wholesale, the
wholesaling arm of Tesco in India, taps the Hong
Kong office for the needs of Star Bazaar stores.

22. • Tesco manages three distribution centres, which
manage high availability and constantly churn out
supplies to the Star Bazaar stores.
• Tesco, which is renowned for its data research and
analytics, is also helping Star Bazaar with customer
research inputs.
• Armed with its advanced demand forecast systems,
auto ordering mechanisms and advanced warehouse
systems, Tesco gets over 80 per cent fill rate to the
stores of Star Bazaar.
• The company will roll out the 'Healthy Choices'
formats at all its 15 stores.

23. IKEA

24. About IKEA
• The company is the world’s largest furniture
retailer
• Founded in Sweden in 1943 by 17-year-
old Ingvar Kamprad
• The company designs and sells ready-to-
assemble furniture such as beds, chairs, desks,
appliances and home accessories.

25. IKEA & INDIA
• In one of the biggest Foreign Direct
Investment (FDI) initiatives, IKEA has proposed
a whopping Rs. 10,500 crore (€1.5 billion)
investment to set up 25 stores under the
single brand retail category.
• It proposes to invest in single brand retail
trading in India through a 100 per cent
subsidiary

26. IKEA & INDIA(Contd..)

27. IKEA & INDIA(Contd..)
• The company would be selling products like
furniture, kitchen utensils, bathroom fittings,
tableware, cooking range, toys, leather articles,
cosmetics, consumer electronics etc.
• Has also proposed to set up restaurants, food
mart, nursing home and publications under its
brand name.
• IKEA's foray into India could help transform
India's largely unorganized $500 billion retail
sector

28. IKEA & INDIA(Contd..)
• It could have a significant impact on the
country's retail sector, vastly improving
availability of high-quality, low-price products.
• The company will have competition when it
arrives, as India already has at least two big-
box housewares retailers, for example -
lifestyle, home town, etc.

29. Recent developments
• India has rebuffed a request by IKEA to relax rules
on buying goods locally, raising the prospect of a
delay in the world's largest furniture maker
entering the Indian retail market.
• the Swedish company sought a 10-year window
to comply with the sourcing rules
• It is opposed to the mandatory norm of sourcing
at least 30 per cent of the value of products sold
from small enterprises in the country

30. FDI in Aviation
• Foreign airlines can buy stakes of up to 49% in
Indian Air Carriers
• Indirect Investment Route
• Includes both foreign direct investment and
foreign institutional investment.

31. Riders Associated
• Chairman & two thirds of Directors need to be
Indian Citizens
• Clearance from Home Ministry and Foreign
Investment Promotion Board
• Substantial ownership and effective control of the
airline being vested in Indian nationals
• All foreign nationals associated with the Indian
company will have to undergo security clearance
• Technical equipment imported into India
following the investment will require civil aviation
ministry clearance

32. Advantages
• Create access to capital, global connectivity,
technology and best practices
• Lead to the establishment of new airlines in India
• Increased competition would lead to better
offerings, greater efficiency, cheaper airfares and
more power to the passenger
• Healthy re-capitalization of airline companies will
promote vital connectivity and bring benefits to
all stakeholders including banks.

33. Problems
• Most domestic carriers looking for money are
financially strained and might not be attractive
targets for investors.
• Long-term growth potential has been squeezed by
high costs and fierce price competition.
• The financial situation of international carriers is
also bad